Consumers’ uncertainty around how long inflation will last increased significantly in November, compared to their outlook earlier in the year, according to a new report from 84.51°, the data research division of Kroger Co.
The trend was seen among all age groups, according to the report, which surveyed consumers who had shopped at Kroger in the previous three months. For example, 19 percent of shoppers aged 18-34 said in November that they believe inflation is here to stay, compared with 11 percent of shoppers that age who said in April that inflation would never end. Even larger increases were seen among shoppers aged 35-54 and those aged 55 and older.
Consumers were also still on the fence about the possibility of a recession, with 37 percent saying they were unsure whether or not a recession was looming, compared with only 13 percent who said they did not believe there would be a recession.
The findings come even as several recent indicators have shown a downward trend in inflation, and as more economists have predicted that the economy might avoid a recession. Prices for many items remain elevated, however, and consumers are also increasingly concerned about the state of global and national affairs.
Nearly half of consumers — 47 percent — said they were less optimistic about current global wars/conflicts ending, and 44 percent said they were less optimistic about the direction of the society/country. Twenty-five percent said they were less optimistic about their personal finances.
“Consumers believe that a path to optimism lies in the aspects of their lives that they have some ability to control, from their jobs and relationships to their own personal health,” the report concluded.
About a quarter of consumers said they were more optimistic both about their personal health and their jobs, while 38 percent said they were more optimistic about their personal relationships.
About 22 percent of consumers said they were “uncomfortable” about their personal finances, and another 15 percent said they were “extremely comfortable.” Asked what was concerning them about their finances, 83 percent of consumers cited grocery prices, and 77 percent cited inflation.
To stretch their grocery dollars amid rising prices, consumers were most likely to say they were looking for sales, deals, and coupons more often, cited by 67 percent of consumers, on average, throughout the year. That was followed by cutting back on non-essential items such as snacks and candy, cited by 57 percent of respondents, and switching to lower-cost brands, cited by 54 percent.
When asked about their overall food dollars, including both grocery and restaurant spending, 57 percent said they were eating out less and ordering less takeout (down from 62 percent in April).
The report also indicated an increased interest in online shopping in the year ahead. Twenty-seven percent of consumers reported that they plan to do more online grocery shopping in 2024, including 12 percent who said they did not shop online in 2023 but planned to do so in the year ahead. That compares with 9 percent who said they planned to shop online less in the year ahead.
“Customers often blend the convenience of ecommerce with the control and perceived cost savings in-store shopping provides,” the report concluded.
Still, 39 percent said they did not shop online in 2023 and did not plan to do so in 2024. The remaining 26 percent said they planned to shop online about the same amount as in 2023.
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